Valuation - Investor's & Entrepreneur's partial commitment

Calculate the Net Present Value (NPV) for the Entrepreneurs Commitment when Partial

by Prof. Richard L. Smith
Chair & Professor of Finance at University of CaliforniaFollow 71

15 reviews1,069 views|Start the discussion!|Bookmark download for free

Description
OUTPUTS of the model:

- Market Risk Premium
- Market Variance

- Expected Project Cash Flow
- Project Standard Deviation of Cash Flows

- Project Beta (based on cost of project)
- Fraction of Investment that is notionally in project

- Required Percent of Equity
- Expected Cash Flow
- Standard Deviation of Cash Flow
- Outside Investor value

- Cash Flow to Entrepreneur
- CAPM Market Value Estimate of Present Value of Project
- CAPM Private Value Estimate - Partial Commitment of Present Value of Project and NVP to Entrepreneur

=> Entrepreneurial Finance, by Janet Kilholm Smith, Richard L. Smith and Richard T. Bliss & Anderson Graduate School of Management - UC Riverside

Purchase the book here: https://www.amazon.fr/dp/0804770913

This Best Practice includes
1 Excel Model